Dear Fellow Expat:
Maybe this isn’t for you. But when the markets experience a dramatic shakeup in the next 18 months - investors will want to know the make, color, and year of the car that hit them, and a description of the driver.
The media will tell you that the driver was orange with blonde hair.
But I assure you - it was a clown car full of central bankers and hedge fund managers.
We continue to explore Capital Wars by Michael Howell. As we’ve explained, there is a refinancing crisis on the horizon. The system has changed dramatically from investment in the real economy to grand-scale financialization over the last three decades.
Today, we have to understand the difference between the two things.
Two Circuits, One Mess
In Chapter 5, Howell introduces his two-circuit theory, which reveals how money really moves in today's world. The economy has two separate power systems, like a house with two electrical grids.
The Industrial Circuit processes real things - building factories, making…
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